Groundstar Resources Limited

Groundstar Resources Limited

September 25, 2015 16:39 ET

Groundstar Resources Limited Provides Corporate Update

CALGARY, ALBERTA--(Marketwired - Sept. 25, 2015) -


Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is pleased to announce that it has filed its audited annual financial statements and accompanying Management's Discussion and Analysis for the year ended April 30, 2015. As previously disclosed, as a result of the remedial accounting efforts completed by the Company in connection with the change in management which took place during Fiscal 2015, various misstatements were discovered in the Company's previously filed unaudited interim financial statements for the first three quarters of the year ended April 30, 2015. The main adjustments were an increase to the depletion expense which had previously been understated, an issuance of capital stock to consultants of the Corporation that was granted in lieu of debt which went unrecorded during the quarterly filings and an increase to operating expenses for items which were improperly capitalized during the year. The remaining adjustments generally result in an overall increase to general and administrative expenses.

The quarterly figures disclosure in the Management Discussion and Analysis for the year ended April 30, 2015 have been updated and corrected. Quarterly filings during Fiscal 2016 will also contain the corrected quarterly figures for Fiscal 2015 along with an explanatory note for the adjustments made.

The Corporation is currently working diligently on preparing the interim filings for the three month period ended July 31, 2015 and expects to have these filings posted in the near future.

As a result of the fact that the financial statements and accompanying Management's Discussion and Analysis for the year ended April 30, 2015 were not filed on or prior to the deadline, the securities commissions in the jurisdictions where the Company is a reporting issuer implemented a cease trade order on the Company's common shares until such time as the Company has filed its annual financial statements and applied for a revocation of the cease trade order. As the Company has now filed its annual financial statements, it intends to apply for a revocation of the cease trade order. Further particulars will be provided in due course.

About Groundstar Resources Limited

Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of resource assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" on the TSX Venture Exchange.

Contact Information:

Groundstar Resources Limited, Suite 2300, 144 4th Avenue SW, Calgary, Alberta T2P 3N4

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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